Direct sourcing may not be a good fit for some situations, so it’s important to also have a a solid, well managed preferred vendor program. Why? The two channels complement each other and serve different purposes in the overall sourcing spectrum. Good direct sourcing programs should place similar compliance and rate rules on both sourcing channels, so that both are aligned with the organization’s business strategy, deliver strong procurement value and meet similar risk management imperatives.

Icons-2-streams-01.svg